Vietnamese loosen purse-strings as economy improves Businesses are now gearing up with their production plans, preparing for the year-end high sales season, anticipating an increase in purchasing power.   ANZ Bank has released a report showing that Vietnamese consumer confidence index in June increased by 2.9 points to a record high of 143.1 points. The bank said that the index rise reflected the strong recovery of Vietnam’s national economy. The General Statistics Office’s reports also showed a strong recovery of purchasing power. In HCM City, total sales of goods and services reached VND323.232 trillion in June, representing a 10.9 percent increase compared with the same period last year. Large retailers in HCM City are optimistic about the increased demand. Vo Hoang Anh, marketing director of Co-op Mart, noted that the retailer’s survey also has found that market demand is increasing. Tran Pham Phuc Nguyen, marketing director of Lotte Mart Vietnam, also noted that the demand for essential goods has been increasing slightly compared with the same period in 2014. Meanwhile, manufacturers noted that demand remains stable though it is now the low sale season. “Consumers have begun spending money. I hope the purchase demand will recover well by the year end,” said Le Thanh Lam, deputy director of SG Food. Analysts noted that the market’s health would be seen most clearly in the last six months of the year. Meanwhile, the competition among retailers is getting stiffer with more retail chains and shops opening recently. Retailers are trying every possible way to attract buyers. Big sales promotions launched by retailers have helped stimulate demand. Hoang Anh Hoa, a housewife in Cau Giay District, said she tends to spend more money now when going shopping. “My husband, a real estate broker, now can earn more money as the property market has warmed up and apartments are selling better. Buyers now have numerous choices as all retail chains are running sales promotions,” Hoa said. “My neighbors in the same residential quarters also tend to spend more on food. They say the national economy is warming up,” she added. Businesses have been advised to expand their production in anticipation of the high year-end sales season. “I think purchasing power would increase in the upcoming months, especially from now to August, when people prioritize buying things for their children’s new academic year,” an analyst said. According to the Domestic Market Management Department under the Ministry of Industry and Trade, total retail turnover in the first six months of the year increased by 9 percent, the highest growth rate in four years, which was attributed to lower inflation. NLD